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- Title
An Analysis of Competitiveness of Indian Clothing Export Sector Using Porter's Model.
- Authors
Mohan Kathuria, Lalit
- Abstract
The textiles and clothing industry contributes about 14% to the country's industrial output and export earnings and also provides direct employment to about 35 million people. It is expected that by 2010, Indian textiles and clothing industry would generate over 12 million new jobs for semi-skilled and unskilled labor and out of this clothing sector would contribute direct employment opportunities with 4 million jobs. From January 1, 2005, the Multi-Fiber Arrangement (MFA) has been replaced by the Agreement on Textiles and Clothing (ATC), under which the world trade in textiles and clothing has become free without the restriction of quotas. In the post-MFA phase-out era, Indian clothing exporters are likely to face tough competition from countries like China, Bangladesh, Vietnam, and Mexico in the international market. A quota-free market may throw up both challenges and opportunities for clothing exporters from India. Intense price competition in the post-MFA phase-out period has put pressure on the suppliers in all the countries to become internationally competitive due to non-price factors such as market proximity and preferential tariffs. This paper examines some of the general implications of MFA phase out and undertakes an analysis of competitiveness of Indian clothing export sector with the help of Porter's Diamond Determinants of National Advantage, namely, 'Factor Conditions', 'Demand Conditions', 'Related and Supporting Industries' and 'Local Rivalry'.
- Subjects
CLOTHING industry; TEXTILE industry; EXPORTERS; TARIFF; EMERGING markets
- Publication
ICFAI Journal of International Business, 2008, Vol 3, Issue 4, p39
- ISSN
0973-3752
- Publication type
Article